Oil, if Iraq didn't have it, the illegal war might never have started in 2003. Oil continues to be a source of violence and conflict within Iraq. For example, an apparent bombing has stopped a pipeline. Ali Berat Meric and Emre Peker (Bloomberg News) report that the Kirkuk-Yumurtalik pipeline is not transporting oil to Turkey currently after a bombing took place within Turkey damaging the pipeline. Orhan Coskun (Reuters) reports, "There were three almost simultaneous explosions at separate points along the pipeline in the Idil area, a Turkish security official said."

There's violence and the conflict? At this point, that's primarily between the central-government in Baghdad and the Kurdistan Regional Government. Nouri took the ongoing disagreement to a new level this week when his government accused the Kurds of selling blackmarket oil to the government of Iran. Alsumaria TV reported the Kurdistan Alliance denied the charges and accused Deputy Prime Minister of Energy Hussein al-Shahristani of declaring war on them and they are calling for him to apologize to the Kurdish people for his accusations. As RT noted, the Kurds were already unhappy with Baghdad over a $1.5 billion debt that they say the centeral-government owes them and that the refusal to pay led the KRG to halt their Baghdad oil deliveries at the start of the week after ten consecutive months of no payment from Baghdad. Alsumaria quotes KRG Natrual Resources Minister Ashti Hawrami telling the press, "Kurdistan Government will not resume oil export before it reaches a comprehensive agreement with Baghdad about payment methods and dues to oil companies in the Region. Kurdistan Government will only resume oil export when it reaches a general agreement with Baghdad." The editorial board of The National offered:

This is, above all else, a political disagreement. And it's a disagreement that is harming both sides. Kurdish leaders are asserting their autonomy that, in terms of state institutions and security forces, is already a fact on the ground. A charitable view is that Mr Al Maliki is trying to unify a national energy sector; an alternative explanation is that Baghdad is trying to monopolise national resources for the exclusive benefit of his constituency.

The casualty in this case is the national economic project. After more than three years of haggling, Iraq's oil law seems no closer to being passed, which in turn harms foreign investment in the sector. Baghdad objects to the deals the KRG has struck independently with oil majors; on Monday, Exxon Mobil confirmed that it had frozen an exploration contract in the Kurdish region because of pressure from Baghdad.

ExxonMobil may or may not have confirmed that. Reuters notes today, "The central government now says that Exxon has written to it twice since early March to say that its deals with the Kurds have been suspended. The Kurds say Exxon has not halted work in Kurdistan and have challenged Baghdad to publish Exxon's letters." And the battle over ExxonMobil is being watched as the Reuters points out:

Oil majors are now waiting on the sidelines, watching the outcome of Exxon's balancing act between Baghdad and Arbil, the northern capital. France's Total is the latest company to provoke Baghdad's ire by acknowledging interest in Kurdistan. "What companies are trying to do is get to the point where they are investing in the north and the south," said one industry source working in Iraq. "But at the moment they cannot do that. And that is what you have to build in when you decide whether to move in or not. You balance the risks."

So the status of the ExxonMobil deal with the KRG is not known at this point. What is known?

Relations between Erbil and Baghdad were strained even before the controversy over the Exxon Mobil deal flared anew. Kurdish President Massoud Barzani delivered a stinging speech on Thursday in Washington that ripped into Maliki as an autocrat.

"Iraq is facing a serious crisis," he said. He insisted that oil deals struck in the autonomous Kurdish region were legal.

KRG President Massoud Barzani spoke in DC this afternoon at a Washington Institute for Near East Policy event. His speech was delivered in Kurdish and translated.

KRG President Massoud Barzani: My visit to Washington came at the invitation of the US government in order to talk about the situation in Iraq, in the wider region, and also the situation between Kurdistan region and Iraq in detail. Yesterday, during our meetings with the President, the Vice President and other officials of the US administration, we have talked about all of these issues in detail. I'm sure many of you know that the people of Kurdistan have sacrificed a great deal and have shed a lot of blood for the sake of building a federal, democratic and pluralistic Iraq. But you always are mindful of the fact that, had it not been for the US support and assistance, without the sacrifices of men and women in uniform, the sacrifices that have been made, this objective would not have been achieved and the regime would not have been toppled. So we got a golden opportunity to build a new Iraq, an Iraq that's federa, democratic, l pluralistic, an Iraq that's new and better. And also to be clear that what's the composition of this new Iraq? It's three main pillars that constitute Iraq. It's the Kurds, the Shias and the Sunnis. Having said that, we have to be mindful of the fact that we have other national minorities living with us, that they have to be respected, they have to be equally treated. We've got the Turkomen, the Chaldean Assyrian, the Syriac and also an Albanian minority. But we also have to realize that in terms of nationalities, Iraq is made up of two main nationalities: Arabs and Kurds. I can say that in Kurdistan we have an experience that to a great extent has been a successful one. I cannot claim that this is an ideal experience without any flaws or shortcomings. But I can say for sure that the security stability situation is very good. The economy and social activies are good. Socially we have made a lot of progress. We in the region have adopted a tolerant policy. We have not resorted to revenge and retaliation. We have opened a new page and therefore we have been able to provide a safe and secure environment and to protect our people. And for that, we are grateful to the support and assistance that we have received from own own people but also thanks to the dedication of the security and law enforcement people. And the safe and secure environment has been the reason for inviting and attracting foreign companies and here lately American oil companies have also started to come to the region and start their investment and other activities. I will give you some brief examples to show you the difference that we have made and theprogress that we have made. After the fall of the regime in 2003, the GDP [Gross Domestic Product] per capita for individuals in the Kurdistan region was $275 per annum and now it exceeds $5,000. And also the electricity rate was 57%. It has reduced or dropped to 16%. Regarding other services and mainly electricity, we've been able to improve that sector. I can say that we're almost able to provide electritiy to all the main cities and townships and rural areas. In certain areas, we have got four hours of electricity. What has come to the Iraqi Treasury from 2003 until now, it has exceeded half-of-a-trillion [dollars]. You can check that information to see what kind of electricity has been provided in other parts of Iraq which does not exceed three to four hours. There are one million people under arms [security forces] but still terrorism and the threat of terrorism continues. Iraq is facing a serious crisis today. Yesterday, we have discussed that very frankly with the President, the Vice President and it's going to one-man rule. It's going towards control of all the establishments of state. So we have got a situation or we ended up having a situation in Baghdad where one individual is the Prime Minister and at the same time he's the commander-in-chief of the armed forces, he's the Minister of Defense, he's the Minister of the Interior and the Chief of the Intelligence and lately he has sent a correspondence to the president of the Central Bank in Iraq that that establishment would also come under the Prime Minister. Where in the world would you find such an example? We as the people of Kurdistan, we believe that this government has come to be as a result of the blood that we have shed and as a result of the sacrifices that we have contributed. We are eager to see the situation reformed. Therefore, we will not leave Baghdad for others. So, therefore, we see the situation in Iraq that it requires to be ruled in partnership -- for that power-sharing and partnership to consist of the Kurds and the Arabs -- both the Shia Arabs and the Sunni Arabs. Of course, we have to be mindful of the fact that the Iraqis themselves have to find solutions for the problems. When they try to find solutions for themselves, then their friends in the international community can help. But if they wait for others, for the outsiders to help solve their problems, they will wait forever and they will not see solutions. They have to do it themselves. It's very natural to have relations with the neighboring countries and also with the international community. But also specifically with the neighboring countries in order to exchange views and to exchange ideas about this but not to give them an opportunity to interfere int he internal affairs of Iraq or for them to come to solve the problems or for them to act on behalf of the Iraqi people. The Iraqis have to do it themselves. But my visit has nothing to do with the other visit it was separate.

The speech was a declaration of the need for the Kurdish leaders to do what is best for the Kurdish people. This was a message to Baghdad and Nouri, of course, but it was also a message to the White House and making clear that pretty words and empty promises will not be accepted by the Kurdish politicians any longer because the Kurdish people deserve more than that.

This was clear in the question and answers that followed. For example, in reply to questions from Barbara Slavin about the oil issue and whether the KRG might move from semi-autonomous to autonomous (breaking completely with Baghdad), Barzani replied through his translator:

We have been waiting for the last six years for promises that were not delivered, for agreements that were not honored. We have waited and everytime they give us an excuse. Once they say that there are elections in Baghdad, another time, elections in the region. Once there is election in the United States. Then there is the Arab Summit, etc., etc. We have found out that we have passed six years waiting for these promises to be delivered. We cannot anymore wait for unfulfilled promises and undelivered promises. There has to be a specific and determined timeline for this to be delivered. We got tired of this and we are fed up with that. Therefore, what we will do is that we will work on the preferred option to work with the other Iraqi groups to find a solution. If not, then we go back to our people and to put all of these realities inf ront of our people for the people to be free to make their own decision. As far as the issue of the oil is concerned, in 2007, when we were working and we reached an agreement on a draft oil hydrocarbons law, we both agreed that if that law did not pass in the Parliament until May that same year that both sides -- the KRG and the federal government -- are free to continuing signing contracts with international oil companies. Therefore, whatever we have done in the region, we have not violated the Constitution. We have acted legally and Constitutionally within the framework of the Constitution.

Did you pay attention to all the excuses that have been given to the Kurds to wait? Including a US election? This speech was a declaration of independence on the part of the Kurds. The basic premise Massoud Barzani has outlined is: We will not be bound by empty words no matter who speaks them.

Many of the remarks were also directed at Nouri al-Maliki. Today was the day Nouri was supposed to demonstrate what a leader he was. The political crisis would finally be addressed via a national conference with the various political blocs participating. News of the conference's death emerged yesterday.